Moving into a new place is always an exciting time. You have everything figured out — you’ve found the right apartment, you know exactly how you’ll decorate it and you’ve planned out a budget. But have you thought about the apartment application fee? Do you know what the application fee is?
These are all things you should know about before moving into a new apartment. In this article, we’ll go into what the application fees are, what they cover and why or if they’re required.
Almost every apartment complex or landlord requires some form of application fees when you move in. When deciding to rent out an apartment, a landlord wants to make sure they have an ideal candidate for renting, therefore, they use application fees to do just this.
Application fees cover the costs of running a background check, credit check and processing the rental application itself. By running credit and background checks through screening companies, they are able to ensure that you are able to pay your rent on time and make sure that they keep the apartment safe from crime.
In some scenarios, the fees cover when the landlord takes the apartment off the market to secure it for you. While it is rare, sometimes there will be a no application fee apartment and the landlord will simply ask you these questions and not make you pay a fee.
Fees vary greatly from state to state. Generally speaking, they are usually affordable and cost anywhere between $20 and $50. That being said, there are some that can cost upwards of $100. One of the things you should watch out for is getting scammed when landlords charge high prices on application fees.
In some cases, there are landlords that try to take advantage of new tenants and will charge outrageous application fees. If this is the case, it’s probably best to walk away. In some states, there are laws that cap the amount a landlord can charge for application fees. It’s important for you to look into this and know what you can and cannot be charged.
Security deposits and application fees are two different fees you’ll pay when moving into a new place. As mentioned, the application fees cover the costs of credit and background checks, as well as other paperwork. The security deposit, however, is a sum of money — typically around the price of the first month’s rent — you give to your landlord when you first move in and they’ll hold onto it until you move out.
Typically, the security deposit covers damage to the apartment that is beyond usual wear and tear, such as ruining a wall or having to replace the carpet. Your landlord will deduct these costs from your security deposit when moving out. If the damage is too bad, they might keep the entire deposit to fix the apartment for the next tenant.
There are some cases in which you’ll be refunded the application fee, but it’s very situational. For instance, if the landlord decided to rent the apartment to another tenant before they processed your application. Sometimes the landlord will refund you if they did all the checks but decided to go another way. However, it’s important to note that this is a rare occurrence.
If the landlord approves and you decide to rent the apartment, most of the time the application fee will go toward your security deposit. Application fees are also a one-time fee, so you won’t get charged this amount monthly.
Finding no application fee apartments is difficult. Because of the Fair Housing Act, many landlords are wary of not doing an application fee or waving it for certain people but not others.
Depending on where you are and what type of apartment you are looking for will also vary finding no application fee apartments. In some cases, people renting their apartments themselves or subletting won’t charge an application fee. That is one of your best chances of finding a place with no fee, or you could try and discuss fees with your landlord.
Renting an apartment is exciting and the start of a new journey and you don’t want it ruined by not knowing about certain fees. Before deciding on a place make sure to sit down and figure out a budget that includes all apartment fees. This way when you go to rent you know exactly what you’re in for. Also, check in your state to see if there is an apartment application fee cap so that you don’t get overcharged.
Knowing all this information will save you time and make the moving process much more fun. Start your renting journey today, here!
Wesley Masters works on Redfin’s stellar Content Marketing team as a content writing specialist. She has been with Rent. since 2023 and her previous experiences include non-profit communications, graphic design, and content creation. Wesley lives in Atlanta, GA, and loves outdoor walks, hanging out with her loved ones, and finding new recipes to try on Pinterest. Her ideal home is a brownstone with contemporary interiors.
